UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form 6-K

 

 

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 under

the Securities Exchange Act of 1934

For the month of August 2017

Commission File No. 000-54189

 

 

MITSUBISHI UFJ FINANCIAL GROUP, INC.

(Translation of registrant’s name into English)

 

 

7-1, Marunouchi 2-chome, Chiyoda-ku

Tokyo 100-8330, Japan

(Address of principal executive office)

 

 

Indicate by check mark whether the registrant files or

will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F      X        Form 40-F                  

Indicate by check mark if the registrant is submitting the Form 6-K

in paper as permitted by Regulation S-T Rule 101(b)(1):

Indicate by check mark if the registrant is submitting the Form 6-K

in paper as permitted by Regulation S-T Rule 101(b)(7):

 

 

 

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THIS REPORT ON FORM 6-K SHALL BE DEEMED TO BE INCORPORATED BY REFERENCE IN THE REGISTRATION STATEMENT ON FORM F-3 (NO. 333-209455) OF MITSUBISHI UFJ FINANCIAL GROUP, INC. AND TO BE A PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS FURNISHED TO THE U.S. SECURITIES AND EXCHANGE COMMISSION TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED WITH OR FURNISHED TO THE U.S. SECURITIES AND EXCHANGE COMMISSION.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: August 14, 2017

 

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English Translation of Excerpts from Quarterly Securities Report Filed in Japan

This document is an English translation of selected information included in the Quarterly Securities Report for the quarter ended June 30, 2017 filed by Mitsubishi UFJ Financial Group, Inc. (“MUFG” or “we”) with the Kanto Local Financial Bureau, the Ministry of Finance of Japan, on August 14, 2017 (the “Quarterly Securities Report”). An English translation of certain information included in the Quarterly Securities Report was previously submitted in a report on Form 6-K dated August 1, 2017. Accordingly, this document should be read together with the previously submitted report.

The Quarterly Securities Report has been prepared and filed in Japan in accordance with applicable Japanese disclosure requirements as well as generally accepted accounting principles in Japan (“J-GAAP”). There are significant differences between J-GAAP and generally accepted accounting principles in the United States. In addition, the Quarterly Securities Report is intended to update prior disclosures filed by MUFG in Japan and discusses selected recent developments in the context of those prior disclosures. Accordingly, the Quarterly Securities Report may not contain all of the information that is important to you. For a more complete discussion of the background to information provided in the Quarterly Securities Report disclosure, please see our annual report on Form 20-F for the fiscal year ended March 31, 2017 and the other reports filed with or submitted to the U.S. Securities and Exchange Commission by MUFG.

 

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Additional Japanese GAAP Financial Information for the three months ended June 30, 2017

 

1.	Changes in the Scope of Consolidation or Application of the Equity Method

 

I.

Significant changes in the scope of consolidation

None.

II. Significant changes in the scope of application of the equity method

None.

 

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2.	Consolidated Balance Sheets

 

I.

Risk-monitored loans included in “Loans and bills discounted”

 

		(in millions of yen)
		March 31, 2017				June 30, 2017
Loans to bankrupt borrowers		¥	46,498			¥	47,060
Non-accrual delinquent loans			738,103				716,718
Accruing loans contractually past due 3 months or more			46,301				46,825
Restructured loans			708,354				637,795
Total		¥	1,539,258			¥	1,448,399

 

The amounts above represent gross amounts before the deduction of allowance for credit losses.

 

II.

The principal amount of money trusts entrusted to domestic trust banking subsidiaries, for which repayment of the principal to the customers was guaranteed

 

		(in millions of yen)
		March 31, 2017				June 30, 2017
Principal-guaranteed money trusts		¥	6,678,398			¥	6,188,356

 

III.

Guarantee obligations for private placement bonds (provided in accordance with the Article 2-3 of the Financial Instruments and Exchange Law) among the bonds and other securities included in “Securities”

 

		(in millions of yen)
		March 31, 2017				June 30, 2017
Guarantee obligations for private placement bonds		¥	563,884			¥	547,929

 

IV.

Contingent liabilities

(Litigation)

In the ordinary course of business, MUFG is subject to various litigation and regulatory matters. In accordance with applicable accounting guidance, MUFG establishes a Reserve for Contingent Losses arising from litigation and regulatory matters when they are determined to be probable in their occurrences and the probable loss amount can be reasonably estimated. Based upon current knowledge and consultation with counsel, management believes the eventual outcome of such litigation and regulatory matters, where losses are probable and the probable loss amounts can be reasonably estimated, would not have a material adverse effect on the MUFG’s financial position, results of operations or cash flows.

 

Management also believes the amount of loss that is reasonably possible, but not probable, from various litigation and regulatory matters is not material to MUFG’s financial position, results of operations or cash flows.

 

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3.	Consolidated Statements of Income

 

“Other ordinary income” for the periods indicated included the following:

 

		(in millions of yen)
		For the three months ended June 30,
		2016				2017
Equity in gains of the equity method investees		¥	61,116			¥	68,021
Gains on sales of equity securities			25,478				31,120

 

“Other ordinary expenses” for the periods indicated included the following:

 

		(in millions of yen)
		For the three months ended June 30,
		2016				2017
Write-offs of loans		¥	27,636			¥	33,597
Provision for reserve for contingent losses			5,680				28,131
Provision for allowance for credit losses			40,334				—

 

4.	Consolidated Statements of Cash Flows

 

No consolidated statements of cash flows have been prepared for the three months periods ended June 30, 2016 and 2017.

Depreciation (including amortization of intangible assets other than goodwill) and amortization of goodwill for the periods indicated were as follows:

 

		(in millions of yen)
		For the three months ended June 30,
		2016				2017
Depreciation		¥	75,716			¥	78,784
Amortization of goodwill			4,037				4,244

 

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5.	Shareholders’ Equity

 

For the three months ended June 30, 2016

 

I.

Cash dividends

 

Date of approval

Type of stock

Total Dividends (in millions of yen)

Dividend per share (yen)

Dividend record date

Effective date

Source of dividends

Annual General Meeting of Shareholders on June 29, 2016

Common stock

124,116

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March 31, 2016

June 29, 2016

Retained earnings

 

II.

Dividends the record date for which fell within the three months periods and the effective date of which was after the end of the three months periods

 

None.

 

For the three months ended June 30, 2017

 

I.

Cash dividends

 

Date of approval

Type of stock

Total Dividends (in millions of yen)

Dividend per share (yen)

Dividend record date

Effective date

Source of dividends

Annual General Meeting of Shareholders on June 29, 2017

Common stock

121,160

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March 31, 2017

June 30, 2017

Retained earnings

 

II.

Dividends the record date for which fell within the three months periods and the effective date of which was after the end of the three months periods

 

None.

 

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6.  Segment Information

I.   Business segment information

(1) Information on net revenue and operating profit (loss) for each reporting segment

For the three months ended June 30, 2016

 

		(in millions of yen)
		For the three months ended June 30, 2016
		Retail Banking Business Group				Corporate Banking Business Group				Global Business Group				Trust Assets Business Group				Total of Customer Business				Global Markets Business Group				Other				Total
Net revenue		¥	284,760			¥	228,889			¥	305,447			¥	41,903			¥	820,856			¥	207,730			¥	(14,582	)		¥	1,014,004
Operating expenses			237,523				142,167				198,608				26,402				568,285				51,672				44,394				664,351
Operating profit (loss)		¥	47,237			¥	86,721			¥	106,838			¥	15,500			¥	252,570			¥	156,058			¥	(58,976	)		¥	349,652

(Notes)

1.

“Net revenue” in the above table is used in lieu of net sales generally used by Japanese non-financial companies.

2.

“Net revenue” includes net interest income, trust fees, net fees and commissions, net trading profit, and net other operating profit.

3.

“Operating expenses” includes personnel expenses and premise expenses.

4.

“Net revenue” and “Operating expenses” for each of the Corporate Banking Business Group and the Global Business Group include net revenue and operating expenses relating to overseas Japanese corporate transactions.

The amounts relating to such transactions included in each of these reporting segments are as follows: ¥ 40,145 million of net revenue, ¥36,417 million of operating expenses and ¥ 3,727 million of operating profit. Adjustments have been made by deducting these amounts from the Total of Customer Business.

For the three months ended June 30, 2017

 

		(in millions of yen)
		For the three months ended June 30, 2017
		Retail Banking Business Group				Corporate Banking Business Group				Global Business Group				Trust Assets Business Group				Total of Customer Business				Global Markets Business Group				Other				Total
Net revenue		¥	293,447			¥	216,258			¥	309,722			¥	44,053			¥	819,184			¥	202,127			¥	7,730			¥	1,029,042
Operating expenses			235,409				144,224				212,936				28,062				582,402				55,292				46,245				683,940
Operating profit (loss)		¥	58,038			¥	72,033			¥	96,785			¥	15,991			¥	236,781			¥	146,834			¥	(38,514	)		¥	345,101

(Notes)

1.

“Net revenue” in the above table is used in lieu of net sales generally used by Japanese non-financial companies.

2.

“Net revenue” includes net interest income, trust fees, net fees and commissions, net trading profit, and net other operating profit.

3.

“Operating expenses” includes personnel expenses and premise expenses.

4.

“Net revenue” and “Operating expenses” for each of the Corporate Banking Business Group and the Global Business Group include net revenue and operating expenses relating to overseas Japanese corporate transactions.

The amounts relating to such transactions included in each of these reporting segments are as follows: ¥ 44,297 million of net revenue, ¥38,230 million of operating expenses and ¥ 6,066 million of operating profit. Adjustments have been made by deducting these amounts from the Total of Customer Business.

 

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(2)	Reconciliation of the total operating profit in each of the above tables to the ordinary profit in the consolidated statements of income for the corresponding three months periods

 

		(in millions of yen)
		For the three months ended June 30,
		2016				2017
Total operating profit of reporting segments		¥	349,652			¥	345,101
Operating profit of consolidated subsidiaries excluded from reporting segments			13,711				5,868
Provision for general allowance for credit losses			(11,452	)			—
Credit related expenses			(56,938	)			(59,378	)
Reversal of allowance for credit losses			—				18,792
Gains on collection of bad debts			12,865				20,500
Net gains on equity securities and other securities			1,710				24,266
Equity in gains of the equity method investees			61,116				68,021
Others			(29,851	)			(25,695	)
Ordinary profit in the consolidated statements of income		¥	340,812			¥	397,476

 

(3)	Changes in reporting segments

From the three months ended June 30, 2017, MUFG has reflected changes in the allocation of net revenue and operating expenses among reporting segments.

Accordingly, the business segment information for the three months ended June 30, 2016 has been restated based on the new allocation.

 

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7.	Financial Instruments

 

There are no material changes to be disclosed as of June 30, 2017 compared to March 31, 2017.

 

8.	Securities

 

There are no material changes to be disclosed as of June 30, 2017 compared to March 31, 2017.

 

9.	Money Held in Trust

 

There are no material changes to be disclosed as of June 30, 2017 compared to March 31, 2017.

 

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10.	Derivatives

 

The following shows those derivatives as of June 30, 2017 which were deemed material in the management of our group company businesses and showed material changes as compared to those as of March 31, 2017.

 

I.

Currency-related derivatives

 

				(in millions of yen)
				March 31, 2017
Classification		Type of transaction		Contract amount				Fair value				Valuation gains (losses)
Transactions listed on exchanges		Currency futures		¥	552,865			¥	(3,750	)		¥	(3,750	)
Over-the-counter (“OTC”) transactions		Currency swaps			57,568,038				(65,667	)			(65,667	)
		Forward contracts on foreign exchange			120,447,312				72,713				72,713
		Currency options			15,290,877				14,445				59,351
		Total			—			¥	17,740			¥	62,646

Notes:

1.

The transactions above are stated at fair value and the related valuation gains (losses) are reported in the consolidated statements of income.

2.

Those derivatives transactions to which the hedge accounting is applied as described in JICPA Industry Audit Committee Report No. 25 “Treatment of Accounting and Auditing concerning Accounting for Foreign Currency Transactions in the Banking Industry” (July 29, 2002) (“JICPA Industry Audit Committee Report No. 25”) and other relevant standards are excluded from the above table.

 

				(in millions of yen)
				June 30, 2017
Classification		Type of transaction		Contract amount				Fair value				Valuation gains (losses)
Transactions listed on exchanges		Currency futures		¥	627,613			¥	(1,323	)		¥	(1,323	)
OTC transactions		Currency swaps			59,772,364				104,303				104,303
		Forward contracts on foreign exchange			116,110,131				43,835				43,835
		Currency options			13,865,060				4,407				44,286
		Total			—			¥	151,221			¥	191,100

Notes:

1.

The transactions above are stated at fair value and the related valuation gains (losses) are reported in the consolidated statements of income.

2.

Those derivatives transactions to which the hedge accounting is applied as described in JICPA Industry Audit Committee Report No. 25 and other relevant standards are excluded from the above table.

 

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II.

Equity-related derivatives

				(in millions of yen)
				March 31, 2017
Classification		Type of transaction		Contract amount				Fair value				Valuation gains (losses)
Transactions listed on exchanges		Stock index futures		¥	927,570			¥	16,462			¥	16,462
		Stock index options			1,526,029				(29,893	)			7,146
OTC transactions		OTC securities option transactions			1,229,248				14,380				24,022
		OTC securities index swap transactions			596,888				20,484				20,484
		Forward transactions in OTC securities indexes			69,583				(1,075	)			(1,075	)
		Total			—			¥	20,358			¥	67,039

Notes:

1.

The transactions above are stated at fair value and the related valuation gains (losses) are reported in the consolidated statements of income.

2.

Those derivatives transactions to which the hedge accounting is applied are excluded from the above table.

 

				(in millions of yen)
				June 30, 2017
Classification		Type of transaction		Contract amount				Fair value				Valuation gains (losses)
Transactions listed on exchanges		Stock index futures		¥	851,661			¥	8,128			¥	8,128
		Stock index options			1,934,399				(26,736	)			11,898
OTC transactions		OTC securities option transactions			1,348,151				12,047				23,325
		OTC securities index swap transactions			744,067				13,886				13,886
		Forward transactions in OTC securities indexes			28,694				905				905
		Total			—			¥	8,231			¥	58,145

Notes:

1.

The transactions above are stated at fair value and the related valuation gains (losses) are reported in the consolidated statements of income.

2.

Those derivatives transactions to which the hedge accounting is applied are excluded from the above table.

 

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III.

Bond-related derivatives

 

				(in millions of yen)
				March 31, 2017
Classification		Type of transaction		Contract amount				Fair value				Valuation gains (losses)
Transactions listed on exchanges		Bond futures		¥	1,113,861			¥	3,583			¥	3,583
		Bond futures options			1,053,852				(721	)			(121	)
OTC transactions		Bond OTC options			531,044				(149	)			(152	)
		Bond forward contracts			1,755,354				777				777
		Bond OTC swaps			275,314				(2,626	)			(2,626	)
		Total return swaps			237,243				10,223				10,223
		Total			—			¥	11,086			¥	11,683

Notes:

1.

The transactions above are stated at fair value and the related valuation gains (losses) are reported in the consolidated statements of income.

2.

Those derivatives transactions to which the hedge accounting is applied are excluded from the above table.

 

				(in millions of yen)
				June 30, 2017
Classification		Type of transaction		Contract amount				Fair value				Valuation gains (losses)
Transactions listed on exchanges		Bond futures		¥	1,612,797			¥	6,159			¥	6,159
		Bond futures options			4,161,602				2,262				3,155
OTC transactions		Bond OTC options			320,046				(59	)			(200	)
		Bond forward contracts			2,031,543				(1,897	)			(1,897	)
		Bond OTC swaps			165,864				(3,019	)			(3,019	)
		Total return swaps			228,918				1,034				1,034
		Total			—			¥	4,479			¥	5,231

Notes:

1.

The transactions above are stated at fair value and the related valuation gains (losses) are reported in the consolidated statements of income.

2.

Those derivatives transactions to which the hedge accounting is applied are excluded from the above table.

 

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IV. Credit-related derivatives

 

				(in millions of yen)
				March 31, 2017
Classification		Type of transaction		Contract amount				Fair value				Valuation gains (losses)
OTC transactions		Credit default options		¥	5,914,221			¥	(2,181	)		¥	(2,181	)
		Total			—			¥	(2,181	)		¥	(2,181	)

 

Note:

The transactions above are stated at fair value and the related valuation gains (losses) are reported in the consolidated statements of income.

 

				(in millions of yen)
				June 30, 2017
Classification		Type of transaction		Contract amount				Fair value				Valuation gains (losses)
OTC transactions		Credit default options		¥	5,890,010			¥	(1,239	)		¥	(1,239	)
		Total			—			¥	(1,239	)		¥	(1,239	)

 

Note:

The transactions above are stated at fair value and the related valuation gains (losses) are reported in the consolidated statements of income.

 

 

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11.  Per Share Information

The bases for the calculation of basic earnings per common share and diluted earnings per common share for the periods indicated were as follows:

 

 

 

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12.  Subsequent Events

 I. Cancellation of Own Shares

MUFG resolved, at a meeting of the Board of Directors held on May 15, 2017, to cancel shares of its common stock in accordance with the provisions of Article 178 of the Company Act. The cancellation was carried out on July 20, 2017.

 

(1)

Reason for the cancellation: To enhance shareholder returns, improve capital efficiency and conduct capital management flexibly

 

(2)

Type of shares canceled: Common shares of MUFG

 

(3)

Number of shares canceled: 141,158,900 shares (equivalent to 1.00% of the total number of shares issued before the cancellation)

 

(4)

Cancellation date: July 20, 2017

 

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